Broker Dealers Brace for Major Money Market Reform

Following the approval of the 2014 money market reform by the Securities and Exchange Commission (SEC), broker-dealers and fund companies have begun to respond to mandated changes to the structure of money market funds. These reforms, which take effect October 2016, fundamentally alter the ability of money market funds to offer investors liquidity and preservation of capital and require comprehensive modifications to the way these funds are processed. Now is the time to focus on developing strategic solutions to comply with the reform while minimizing impact to Firms and clients.

The impacts of the reform are far reaching for broker-dealers who built their money market fund processing technology and operating policies, controls and procedures upon the assumption of a stable share price of $1.00. Gartland and Mellina Group (GMG) has been following the money market reform for over 2 years and is currently assisting multiple clients develop  operations, technology and product solutions. In this latest GMG whitepaper, “Tackling the Money Market Reform,” authors Bharat Sawhney and Matthew Yee discuss why broker-dealers should take action on money market reform and offer a multi-dimensional approach to the resulting changes in supporting technological and operational infrastructure.  Further, this whitepaper offers insights into the implications of the reforms ranging from a detailed analysis of the specific operational and technological impacts to a look at formulating a strategy to comply with the reform.

Recently, Matthew Yee shared insight with Investment News on the product decisions broker-dealers are facing when it comes to offering money market funds as sweep vehicles in a Floating NAV, Liquidity Fee and Redemption Gate regulatory environment.

To view the article, click here.

To view the press release, click here.

To view the white paper, click here.

Gartland & Mellina Group — A Management Consulting Company